Do Men Truly Pay More for Coverage?
By Andrew Evans | Automobile.com | 12/14/2012
When it comes to car insurance premiums, men usually pay more when compared to their female counterparts. Things are about to change overseas, thanks to a ruling by the European Court of Justice in 2011. BBC reports insurers in the European Union will no longer be able to determine insurance rates based on gender for all new customers and renewals after December 21 of this year. This means women's premiums could rise as much as 24% and male rates will go down, according to a government estimate referenced in the report.
Meanwhile back at home in the United States, many men will continue paying more than females for coverage. In our latest commissioned survey, we examined the average premiums men and women pay, broken up by their age group. Additionally, we took note of automobile make preferences between the groups. The survey concluded that the greatest disparity between genders occurs under the age of 20. Male drivers age 16 to 20 pay an average annual premium of $1226.48 compared to the $965.78 paid by females.
As teen drivers become young adults, the cost disparity begins to stabilize. Male drivers age 21 to 24 pay an average premium of $1071.04. Female drivers in the same age group pay $1001.32 for coverage. Once male and female drivers reach the magic age of 25, this is when men can breathe a sigh of relief in terms of the amount paid. According to the survey, male and female drivers pay $825.61 and $826.43 for coverage each year, respectively. In other words, drivers over the age of 25 shouldn't be too worried about discrimination on the basis of gender.
Younger American male drivers, on the other hand, should consider strategies that will decrease the amount they will pay for coverage. Many insurers offer discounts for student drivers that have a good grade point average, for example. Using a reputable cost comparison site such as Automobile.com will ensure drivers can accurately compare the costs associated with purchasing coverage between several providers.
When it comes to make preference among men and women, there seems to be more similarities than differences. Our survey revealed both male and female drivers over the age of 25 (as well as males age 21 to 24) are most likely to drive a Ford or Chevrolet vehicle. Females age 21 to 25 are most likely to drive Honda or Ford models. Finally, 16 to 20 year old males are most likely to drive Dodge or Nissan models while females of the same age are most likely to drive Nissan and Pontiac offerings.
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